Insurers could still pay big Olympic delay price after organisers shift to 2021

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INSURERS facing a near $3 billion claim from scrapping the 2020 Tokyo Olympics could still face large claims after the event was delayed until next year.

Analysts at Jefferies said cancelling the Games altogether would have triggered a string of event cancellation claims, estimated at $2 billion for TV rights and sponsorship and $600 million for hospitality.

Delaying the Olympics will cost insurers slightly less than scrapping it completely but the final figure is still likely to be substantial, market sources say. That is because most policies treat postponement in the same way as cancellation. 

Swiss Re has already admitted a $250 million exposure if the event is cancelled. Re is s aid to be on the hook for $500 million. They are likely to face the bulk of the claims but a string of Lloyd’s of London insurers will also have underwritten the Games.

Source Article from https://www.standard.co.uk/business/insurers-could-still-pay-big-olympic-delay-price-after-organisers-shift-to-2021-a4397871.html

March 26, 2020 |
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